When Does Property Pass Under a Contract for the Sale

question 15

Multiple Choice

When does property pass under a contract for the sale of specific goods where the goods need to be weighed,measured or tested to be put into a deliverable state?

• A)As soon as the seller is ready to pass the goods to the buyer.
• B)As soon as the buyer accepts the offer to buy the goods.
• C)As soon as the goods have been weighed,measured or tested as required.
• D)As soon as the buyer pays for the goods.

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Definitions:

Retained Earnings

The portion of a company's profit that is held back and not paid out as dividends, used for reinvestment in the business or debt repayment.

Stock Split

A corporate action that increases the number of shares in a company by issuing more shares to current shareholders proportional to their ownership.

Market Value

The current value of an asset or company based on the price that it can be sold in the open market.

Paid In Surplus

The amount of money paid by investors for shares above their nominal value, representing additional contributed capital.